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As in previous drought years, net farm income in 2012 is expected to be fairly stable

In current dollars (ignoring the effects of inflation), U.S. net
farm income is forecast to exceed $122 billion in 2012 and net cash
income is expected to exceed $139 billion, both record nominal
values. The expected increase in income reflects large price-led
gains in corn and soybean receipts, as well as large increases in
crop insurance indemnities. Crop farm gains should be more than
enough to offset livestock farmers' higher feed expenses and a
decline in sales of wholesale milk. Extreme hot and dry conditions
in the Plains and Corn Belt are drastically cutting projected corn
and soybean yields. With corn and soybean supplies for the
2012 marketing year expected to be the lowest in 9 years, prices
are increasing dramatically, resulting in higher than expected 2012
calendar-year receipts for many crops. This chart is from the Farm
Sector Income & Finances topic page on the ERS
website, updated August 28, 2012.